“To create the synthetic USD, Stablesats uses a financial instrument invented by the BitMEX cryptocurrency exchange called a perpetual inverse swap using perpetual futures contracts. Futures contracts are a type of agreement to buy or sell a specific asset (such as bitcoin) at a set future date for a set price. Perpetual futures contracts differ in that they are perpetual and don’t specify a future date.”

Example

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In the words of Jack: “words”

That still doesn’t make sense. How does selling bitcoin at a future date at a set price stabilize your synthetic USD?

Yup, it’s not my world either. Maybe nostr:npub1flac02t5hw6jljk8x7mec22uq37ert8d3y3mpwzcma726g5pz4lsmfzlk6 can explain it to us